US first quarter growth picks up but weaker than expected
Idag, 14:49
(Alliance News) - US economic growth picked up in the first quarter, though at a weaker pace than expected, while separate data on Thursday showed inflation pressure accelerated markedly in March.
Gross domestic product rose 2.0% in the first three months of the year on an annualised basis quarter-on-quarter, the Bureau of Economic Analysis said, picking up from 0.5% in the final quarter of 2025.
"Compared to the fourth quarter of 2025, the acceleration in real GDP in the first quarter of 2026 reflected upturns in government spending and exports, and an acceleration in investment that were partly offset by a deceleration in consumer spending. Imports turned up," the BEA said.
Growth was shy of the FXStreet cited forecast, which estimated a 2.3% advance.
Inflation pressure intensified during the quarter. The personal consumption expenditure gauge rose 4.5% on-quarter, speeding up from 2.9% growth in the final quarter of 2025 from the third quarter. The core PCE gauge, which excludes food and energy, accelerated to 4.3% on-quarter growth in the first quarter, from 2.7% in the final quarter.
The first quarter reading topped the FXStreet cited consensus of 4.1%.
PCE data for March alone was also released. The BEA said the PCE price index rose 0.7% in March from February. It had risen 0.4% in February from January. Monthly core PCE price growth eased to 0.3% in March from 0.4% in February.
On-year, prices were 3.5% higher in March, accelerating from a 2.8% rise in February. Excluding food and energy, it picked up to 3.2% in March from 3.0% in February.
Both readings landed in line with expectations.
Finally, the Department of Labor said initial jobless claims in week to April 25 eased to 189,000, from 215,000 seven days prior. The prior reading was upwardly revised from 214,000.
The latest reading was below an FXStreet cited forecast of 215,000, which would have been in line with the week prior.
Continuing jobless claims in the week to April 18 fell to 1.785 million from 1.808 million. The prior reading was downwardly revised from 1.821 million.
By Eric Cunha, Alliance News news editor
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
US first quarter growth picks up but weaker than expected
Idag, 14:49
(Alliance News) - US economic growth picked up in the first quarter, though at a weaker pace than expected, while separate data on Thursday showed inflation pressure accelerated markedly in March.
Gross domestic product rose 2.0% in the first three months of the year on an annualised basis quarter-on-quarter, the Bureau of Economic Analysis said, picking up from 0.5% in the final quarter of 2025.
"Compared to the fourth quarter of 2025, the acceleration in real GDP in the first quarter of 2026 reflected upturns in government spending and exports, and an acceleration in investment that were partly offset by a deceleration in consumer spending. Imports turned up," the BEA said.
Growth was shy of the FXStreet cited forecast, which estimated a 2.3% advance.
Inflation pressure intensified during the quarter. The personal consumption expenditure gauge rose 4.5% on-quarter, speeding up from 2.9% growth in the final quarter of 2025 from the third quarter. The core PCE gauge, which excludes food and energy, accelerated to 4.3% on-quarter growth in the first quarter, from 2.7% in the final quarter.
The first quarter reading topped the FXStreet cited consensus of 4.1%.
PCE data for March alone was also released. The BEA said the PCE price index rose 0.7% in March from February. It had risen 0.4% in February from January. Monthly core PCE price growth eased to 0.3% in March from 0.4% in February.
On-year, prices were 3.5% higher in March, accelerating from a 2.8% rise in February. Excluding food and energy, it picked up to 3.2% in March from 3.0% in February.
Both readings landed in line with expectations.
Finally, the Department of Labor said initial jobless claims in week to April 25 eased to 189,000, from 215,000 seven days prior. The prior reading was upwardly revised from 214,000.
The latest reading was below an FXStreet cited forecast of 215,000, which would have been in line with the week prior.
Continuing jobless claims in the week to April 18 fell to 1.785 million from 1.808 million. The prior reading was downwardly revised from 1.821 million.
By Eric Cunha, Alliance News news editor
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
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